Understanding Auto Loan Charge-Offs and Lien Releases: What You Need to Know

Auto loans are being repossessed and charged off at alarming rates, but did you know that charge-offs without repossession are more common? Banks often choose to write off the loan after 90–120 days of non-payment, as repossessing the vehicle rarely recoups the cost due to poor vehicle conditions or high repossession fees. If you're facing a charge-off and want to clear the lien on your title, it’s important to understand the process. A lien release request is crucial to remove the charge-off from your title, and in some cases, you can even pursue a court order title.

For more details on lien releases or to speak with a licensed title agent, visit actualhuman.com for a one-on-one consultation.